Question
In: Accounting
Dexter Corporation produces and sells a single product, a wooden hand loom for weaving small items...
Dexter Corporation produces and sells a single product, a wooden hand loom for weaving small items such as scarves. Selected cost and operating data relating to the product for two years are given below:
| Selling price per unit | P500 |
| Direct materials | P110 |
| Direct labor | P60 |
| Variable manufacturing overheads | P30 |
| Fixed manufacturing overheads per year | P1 200 000 |
| Variable selling and administrative costs | P40 |
| Fixed selling and administrative costs | P700 000 |
| Units in beginning inventory | 2 000 |
| Units produced during the year | 6 000 |
| Units sold during the year | 8 000 |
| Units in ending inventory | 0 |
Required:
a. Prepare an income statement under absorption costing.
b. Prepare an income statement under marginal costing.
c. Reconcile the marginal costing and absorption costing net operating incomes.
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Expert Solution
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ekkarill92 answered 1 year agoRelated Solutions
Dexter Corporation produces and sells a single product, a wooden hand loom for weaving small items...
Dexter Corporation produces and sells
a single product, a wooden hand loom for weaving small items such
as scarves. Selected cost and operating data relating to the
product for two years are given below:
Selling price per unit
P500
Direct materials
P110
Direct labor
P60
Variable manufacturing overheads
P30
Fixed manufacturing overheads per
year
P1 200 000
Variable selling and administrative
costs
P40
Fixed selling and administrative
costs
P700 000
Units in beginning inventory
2 000
Units produced during the...
The Cornerstone Corporation produces and sells a single product. The following data refers to the year...
The Cornerstone Corporation produces and sells a single
product. The following data refers to the year just
completed:
List of Account Titles
Beginning inventory
0
Units produced
9,000
Units sold
7,000
Selling price per unit
$
47
Selling and administrative expenses:
Variable Cost per unit
$
4
Fixed Cost per year
$
58,000
Manufacturing costs:
Direct materials cost per unit
$
10
Direct labor cost per unit
$
6
Variable manufacturing overhead cost per
unit
$
5
Fixed manufacturing overhead...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
30,300
Units sold
24,700
Selling price per unit
$
465
Selling and administrative
expenses:
Variable per unit
$
25
Fixed per year
$
469,300
Manufacturing costs:
Direct materials cost per
unit
$
211
Direct labor cost per unit
$
53
Variable manufacturing overhead
cost per unit
$
36
Fixed manufacturing overhead per
year
$
454,500
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory 0 Units produced 32,700 Units sold 27,100
Selling price per unit $ 459 Selling and administrative expenses:
Variable per unit $ 20 Fixed per year $ 406,500 Manufacturing
costs: Direct materials cost per unit $ 298 Direct labor cost per
unit $ 52 Variable manufacturing overhead cost per unit $ 30 Fixed
manufacturing overhead per year $ 425,100 Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
34,000
Units sold
28,700
Selling price per unit
$
409
Selling and administrative expenses:
Variable per unit
$
18
Fixed per year
$
602,700
Manufacturing costs:
Direct materials cost per unit
$
252
Direct labor cost per unit
$
55
Variable manufacturing overhead cost per unit
$
32
Fixed manufacturing overhead per year
$
646,000
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
31,700
Units sold
28,600
Selling price per unit
$
416
Selling and administrative expenses:
Variable per unit
$
22
Fixed per year
$
457,600
Manufacturing costs:
Direct materials cost per unit
$
240
Direct labor cost per unit
$
54
Variable manufacturing overhead cost per unit
$
37
Fixed manufacturing overhead per year
$
380,400
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
28,000
Units sold
24,000
Selling price per unit
$
466
Selling and administrative expenses:
Variable per unit
$
21
Fixed per year
$
336,000
Manufacturing costs:
Direct materials cost per unit
$
296
Direct labor cost per unit
$
57
Variable manufacturing overhead cost per unit
$
34
Fixed manufacturing overhead per year
$
448,000
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning
inventory
0
Units
produced
34,500
Units sold
26,800
Selling price
per unit
$
490
Selling and
administrative expenses:
Variable per
unit
$
16
Fixed per
year
$
616,400
Manufacturing
costs:
Direct materials
cost per unit
$
254
Direct labor
cost per unit
$
55
Variable
manufacturing overhead cost per unit
$
33
Fixed
manufacturing overhead per year
$
552,000
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation
produces and sells a single product. The following data refer to
the year just completed:
Beginning
inventory
0
Units
produced
34,500
Units sold
26,800
Selling price
per unit
$
490
Selling and
administrative expenses:
Variable per
unit
$
16
Fixed per
year
$
616,400
Manufacturing
costs:
Direct materials
cost per unit
$
254
Direct labor
cost per unit
$
55
Variable
manufacturing overhead cost per unit
$
33
Fixed
manufacturing overhead per year
$
552,000
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
34,300
Units sold
27,700
Selling price per unit
$
446
Selling and administrative expenses:
Variable per unit
$
20
Fixed per year
$
498,600
Manufacturing costs:
Direct materials cost per unit
$
259
Direct labor cost per unit
$
59
Variable manufacturing overhead cost per unit
$
35
Fixed manufacturing overhead per year
$
617,400
Assume that...
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